House Prices

[scooterscot]

But most renters cannot afford to buy. There has always been house price slumps as soon as expectations fall and they are falling.

I rent at the moment would not want to buy in the south too much boom and bust. Our house in Glasgae is let and suffice to say there’s never been a crash in the motherland for the last 78 years.

[_V_]

http://news.bbc.co.uk/1/hi/business/6274447.stm

Mortgage lending fell 10% in December, but was still at record levels for the month, figures showed.

Homebuyers borrowed £29.4bn from banks, building societies and specialist firms, the Council of Mortgage Lenders (CML) said in its monthly report.

This compared to £33.1m in November but was 8.8% higher than in December 2005.

The CML predicted that high prices and demand for homes would continue and that mortgage lending would top the £346bn that was borrowed in 2006.

That figure was 20% up on the figures for 2005.

Up, up and away!

[Bagpuss]

And if the BTL owners have to sell them off, then the prospective tenants will find fewer places to rent and will have to buy (the very same houses) so demand will not slump.

If need be the Government will "help" needy would-be buyers, i.e. take more money from those who work, to give it to those who buy houses, so that they can give it in turn to those who sell houses.

But most renters cannot afford to buy. There has always been house price slumps as soon as expectations fall and they are falling.

[wendigo100]

Meanwhile debt goes up and up...

[expat]

Rents will go up to cover the rises. More immigrants will arrive. More city bonuses.

The only way is up, big time, forever.

And if the BTL owners have to sell them off, then the prospective tenants will find fewer places to rent and will have to buy (the very same houses) so demand will not slump.

If need be the Government will "help" needy would-be buyers, i.e. take more money from those who work, to give it to those who buy houses, so that they can give it in turn to those who sell houses.

[Troll]

The last downturn

q1 1989 3148.7 59,534 32.0
Q2 1989 3292.0 62,244 27.2
Q3 1989 3320.5 62,782 15.5
Q4 1989 3252.4 61,495 7.4
Q1 1990 3151.5 59,587 0.1
Q2 1990 3119.5 58,982 -5.2
Q3 1990 3027.7 57,245 -8.8
Q4 1990 2904.6 54,919 -10.7
Q1 1991 2885.0 54,547 -8.5
Q2 1991 2931.0 55,418 -6.0
Q3 1991 2903.8 54,903 -4.1
Q4 1991 2836.7 53,635 -2.3
Q1 1992 2760.1 52,187 -4.3
Q2 1992 2785.3 52,663 -5.0
Q3 1992 2763.1 52,243 -4.8
Q4 1992 2653.4 50,168 -6.5
Q1 1993 2651.3 50,128 -3.9
Q2 1993 2745.9 51,918 -1.4
Q3 1993 2736.8 51,746 -1.0
Q4 1993 2700.0 51,050 1.8
Q1 1994 2714.6 51,327 2.4
Q2 1994 2716.5 51,362 -1.1
Q3 1994 2736.0 51,731 0.0
Q4 1994 2756.3 52,114 2.1
Q1 1995 2701.8 51,084 -0.5
Q2 1995 2730.8 51,633 0.5
Q3 1995 2715.0 51,334 -0.8
Q4 1995 2693.7 50,930 -2.3
Q1 1996 2716.8 51,367 0.6
Q2 1996 2804.8 53,032 2.7
Q3 1996 2856.4 54,008 5.2

[andy]

I think they will go up
before they will go down and then up again

[Troll]

Rents will go up to cover the rises. More immigrants will arrive. More city bonuses.

The only way is up, big time, forever.

Obviously then HMG has to make "purchase of property" a pre-condition of granting asylum or FTV... sorted

[Francko]

Rents will go up to cover the rises. More immigrants will arrive. More city bonuses.

The only way is up, big time, forever.

Were is the options "We are doomed"?

[DimPrawn]

Rents will go up to cover the rises. More immigrants will arrive. More city bonuses.

The only way is up, big time, forever.

[BrilloPad]

It has got to the threshold where even an interest only BTL mortgage will be just about covered by the rent in most of the south east. Another rise and that will no longer be the case. Assuming many people who bough BTL are on average income and rental incomes are falling, then many people must be at , or near to, breaking point.

good point. But how many BTLs are instead of a pension? Will those people sell or wait until they retire/die to sell?

[Bagpuss]

It has got to the threshold where even an interest only BTL mortgage will be just about covered by the rent in most of the south east. Another rise and that will no longer be the case. Assuming many people who bough BTL are on average income and rental incomes are falling, then many people must be at , or near to, breaking point.

[DimPrawn]

Do you know, I really don't know anymore.

Common sense would dictate they will fall, but since when has the British people ever applied common sense to buying houses?

So on that basis, I will say rise a lot (like 20%).

[Bagpuss]

Groundhog day part 98673737